AS EESTI TELEKOM Preliminary financial results of 2001

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AS EESTI TELEKOMPreliminary financial results of
2001
February 7, 2002
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ESTONIA No of polulation 1.36 mln 1 EUR 15.6466
EEK GDP 2000 85 426 mEEK GDP per capita 62
800 EEK 70 mln people in the region SP
A- Moodys Baa1 Fitch IBCA A-
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History of Eesti Telekom
Evolving from a state owned telecommunications
enterprise to a privatised market driven full
service communications provider
1991 - 1993 Foundation of a Holding Company SE
Estonian Telecom, Estonian Telephone Company
and Estonian Mobile Telephone Company
August 1997 Reorganisation into a limited
company - Estonian Telecom Ltd (ETL)
October 1997 Government adopts resolution to
sell 49 of ETL through an IPO in Tallinn and
abroad
1998/99 IPO and Restructuring Feb 1999
2001 Operating on fully opened and
liberalized market
2000 Preparing for competition
1996
1997
1998
1999
2000
2001
1991
1992
1993
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Structure of Eesti Telekom Group
Public Investors 23.7
Telia, Sonera 49
Rep.of Estonia 27.3
EESTI TELEKOM
100 EMT
EESTI TELEFON 100
100 Esmofon
Telefonipood 100
50 Intergate
Connecto 100 STARTED 1.1.2001
100 Esmofon Tartu 68 -gt 100 IN FEB. 2001
25 Sertifitseerimis- 25 keskus ESTABLISHED
16.02.01
100 Mobile Wholesale PREVIOUSLY AS TARVIN
EsData 30
26 Voicecom
Teabeliin 60 SOLD ON 11.04.01
3 Reach-U Holding
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Financials
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Financial summary 1997 2001(mln EEK)
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Revenue history
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EBITDA history
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Profit history
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Quarterly informationEesti Telekom Group
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Quarterly informationEesti Telefon Group
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Quarterly informationEMT Group
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Cash flow, mln EEK
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Investments
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Headcount
) A part of employees of Eesti Telefon were
transferred to a new subsidiary AS Connecto,
which average number of employees in December was
396.
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Mobile business
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Monthly ARPU
Including fees, EMTs subscribers outgoing calls
in Estonia, roaming calls, incoming calls in
abroad and incoming calls in Estonia, sale of
Simpel cards and starter kits.
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Mobile penetration in Estonia
Estimated market shares Dec-01
Clients of mobile operators per 100 inhabitants
Source Estonian Communications Board
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Client base of EMT
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Mobile Positioning System
MPS services for commercial use were launched on
November 1 2000. In 2001, EMT and Mgine
Technologies introduced a new PinPoint software
that allows to increase the accuracy of mobile
positioning over EMTs network. EMTs marketing
director Experts estimate that 60 of
additional mobile phone services will be based on
location in the next few years.
A three-way agreement to facilitate the
implementation of Mobile Positioning System
service in Estonia for Estonian Rescue Board was
signed in April 2001 by Estonian Rescue Board,
Estonian Mobile Telephone Company and Ericsson.
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Mobile Parking
EMT first began offering mobile parking in
July 2000. The service is offered in 4 Estonian
towns. The number of service users has increased
by an average of 1000 new people each months and
the share of paying by mobile phones is already
30 of the total parking turnover in Tallinn.
Almost 20 000 customers used the service at the
end of 2000. It is a unique service that has
attracted interest also in the international
market. It was nominated for the GSM
Association's Prize of the Year 2000 in the
category of most innovative service.
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GPRS
On July 1, 2001, EMT, as the first operator in
Estonia, put GPRS into commercial use
GPRS can be used everywhere in Estonia where GSM
is available. Data transfer speed of GPRS is
currently up to 53 Kb/sec.
Pricing is volume-based, no monthly fee. Volume
fee 40 EEK/MB in Mobile-Internet 50 EEK/MB
in WAP
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UMTS

• Government hasnt officially announced the
  procedures yet.
• Beauty contest
• Licenses 4 (currently 3 GSM licenses)
• Licence fee 50-100 mln EEK
• Start, later part of year 2003
• Investments 2003-08 approx. 1,5 bln EEK

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Fixed Business
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Fixed communicationsEesti Telefon. Revenue
structure
Revenue
2 673 mln EEK
2 529mln EEK
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Fixed communications
Penetration and digitalisation
Lines per employee
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No of ADSL customers growing rapidly
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Market shares. Voice servicesBased on Eesti
Telefon estimates, December 2001
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Market shares. Data servicesDecember 2001
ETC clients minutes to other opartors dial-up
centres
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Tariffs at end January 2002, EEK
) peak hours ) private package/ business
package
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Fees and tariffs effective from 01.01.02

• Eesti Telefon increased monthly fees for private
  clients
• Digital from 75 EEK to 98 EEK
• Analog from 50 EEK to 84 EEK
• Interconnection tariffs were changed
• Local level from 0.05 EEK/min to 0,11 EEK/min
• Regional level from 0,08 EEK/min to 0,11 EEK/min
• National level from 0,12 EEK/min to 0,16 EEK/min

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Atlas Family
Eesti Telefon has made a powerful entry into the
rental services and IT solutions market. Based on
the ASP (Applications Service Provider) business
model, the company offers analytical software,
communication and teamwork solution,
Internet-based time-scheduling application,
equipment hosting service, rental space for video
and audio records, etc.
INTERNET ACCESS
DATA COMMUNICATIONS, PRIVATE NETWORKS
SECURE DISTANT WORKING
ATLAS CENTRUM
ATLAS TELE-HOTEL
ATLAS MAESTRO
ATLAS ORACLE
ATLAS E-ADMINISTRATOR
ATLAS VPN
ATLAS REAL TIME
ATLAS DATA HOSTEL
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Solution for Tallinn Central Hospital

• 450 fixed phones are connected to the local
  network. Free of charge calls are enabled inside
  the hospital
• ward-phones are connected to the network
• 200 computerised places of work are connected
• 19 places have optical telecommunication
  channel for tele-medicine
• security system is connected
• employees have an access to data- and
  information bases of the hospital

Launched in April 2001. Embraces six buildings of
the hospital.
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Secure Distant Working
In June 2001, AS Eesti Telefon in cooperation
with AS Privador will introduce a solution called
Secure Distant Working, which will considerably
enhance the usage of home or mobile offices. The
solution will enable a secure and confidential
access to documents, databases, e-mail and
web-applications of a local network of a company.
Secure Distant Working establishes a secure
channel between the local network of a company
and a distant worker that cannot be entered by an
outsider. The connection is secured by Secure
Sockets Layer protocol, which ensures the
confidentiality and integrity of data and
authenticates the connection establisher.
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AS Eesti Telekom Share
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Share price developments